Investment Scams in Nepal
Fraudulent investment schemes in Nepal targeting remittance savings and growing domestic investor interest in stocks and real estate.
Part of: Investment Scams
Last reviewed: 1 June 2026
Nepal's investment landscape is relatively young, with many citizens investing for the first time through microfinance cooperatives, the Nepal Stock Exchange (NEPSE), and emerging real-estate funds. This inexperience creates vulnerability to fraudulent schemes that mimic these legitimate channels.
Cooperative-based Ponzi schemes have historically been a major problem in Nepal, with some operating for years before collapse, leaving depositors — many of whom are rural and elderly — with nothing.
How this scam works on Nepal
Cooperative savings schemes offer monthly interest rates significantly above what commercial banks offer, attracting small depositors from villages and towns. Early depositors receive genuine returns funded by new members. When recruitment slows, the scheme collapses, with later depositors losing everything.
Fake NEPSE investment clubs operate on Facebook, selling access to supposed insider tips for a monthly subscription fee. Members receive generic advice and eventually stop receiving updates.
Real-estate investment fraud advertises plots and apartments in Kathmandu's Outer Ring Road corridor, collecting deposits for projects that have no planning permission or land ownership behind them.
Common red flags
- Cooperative offering monthly interest significantly above Rastriya Banijya Bank savings rates
- Investment club requiring subscription fees for NEPSE tips
- Real-estate project with no verifiable land registry title or Department of Land Management filing
- Cooperative not registered with the Department of Cooperatives Nepal
- Pressure to recruit new members to qualify for higher returns
- Inability to access your balance or withdraw funds within the stated timeline
How to protect yourself
- Verify cooperatives on the Department of Cooperatives Nepal register at cooperative.gov.np
- Check real-estate developers on the Department of Urban Development register
- Use only SEBON-licensed intermediaries for stock market investments
- Avoid investment clubs that charge fees for market tips — these are rarely legitimate
- Understand that returns above regulated savings rates carry proportionally higher risk
- Seek advice from a SEBON-registered investment adviser before placing significant capital
How to report it
- Report to the Securities Board of Nepal (SEBON) at sebon.gov.np
- File a complaint with the Department of Cooperatives Nepal at cooperative.gov.np
- Report to Nepal Police Financial Crimes Unit at your district police office
Frequently asked questions
My village cooperative has been paying good returns for years — does that history prove it's legitimate?
Not necessarily — a long track record of early payouts is exactly how Ponzi-style cooperatives sustain themselves, using new deposits to pay existing members until recruitment slows and the scheme collapses. Verify registration with the Department of Cooperatives Nepal independently of how long the scheme has been operating.
Is it worth paying for a Facebook investment club subscription if the tips have been accurate so far?
Past accuracy on free or low-cost tips doesn't guarantee future advice is sound, and paid NEPSE 'insider tip' subscriptions are a recurring fraud pattern. Use only SEBON-licensed intermediaries for actual investment decisions rather than relying on unverified group advice.
Are cooperative savings schemes in Nepal regulated?
Cooperatives are regulated by the Department of Cooperatives Nepal. Registered cooperatives must meet capital requirements and submit regular audits. Verify registration before depositing. Unregistered cooperatives offering high returns have no legal safety net.